Rad Power Bikes faces shutdown in January without new funding

Rad Power Bikes has informed its employees that it volition unopen down successful January if it is incapable to find caller backing oregon get acquired, according to an interior unit email viewed by TechCrunch.

The company’s enactment is “still warring to find ways to continue,” and “the cessation of Rad’s operations is not a forgone conclusion,” according to the email, which was sent by Rad Power’s “people team.” Rad Power employees were told determination had been a “very promising” enactment to support the institution live that “appeared to beryllium apt to close,” but the woody — which was not specified successful the email — “did not travel to fruition.”

“Rad is thing without its radical and wants to guarantee that each employees are taken attraction of and provided for to the fullest grade feasible. Executive leaders are hopeful that a viable solution volition beryllium recovered to guarantee that Rad squad members stay gainfully employed for the foreseeable future. However, to beryllium afloat transparent, contempt our corporate efforts, it is imaginable that this whitethorn not happen, and Rad whitethorn beryllium forced to cease operations,” the email reads. GeekWire was archetypal to study the contents of the email.

Seattle-based Rad Power has gone done multiple rounds of layoffs implicit the past fewer years coming retired of the pandemic. While the aboriginal pandemic days were a boon to micromobility companies similar Rad Power, a “sudden driblet successful user demand” near the institution saddled with excess inventory, according to the email viewed by TechCrunch. “Rad continues to look important fiscal challenges, including successful the signifier of tariffs and the macroeconomic landscape.”

“At this time, Rad’s enactment is focused connected supporting our employees, serving our Rad Riders, and giving Rad the champion accidental for longevity,” a spokesperson for the institution

Rad Power is acold from the lone institution successful the e-bike oregon micromobility abstraction to tally into occupation recently. A fig of others person gone retired of concern oregon had to restructure implicit the past fewer years, similar Cake, VanMoof, Superpedestrian, and Bird.

Despite the manufacture turmoil Rad Power was inactive considered to marque immoderate of the astir compelling e-bikes connected the market. But faced with escalating fiscal pressure, the institution swapped CEOs earlier this year. It brought successful an enforcement named Kathi Lentzsch who has spent decades turning astir underperforming companies.

Lentzsch and the different executives astatine Rad Power person spent the past fewer months exploring “strategic partnerships with different companies that could get [Rad Power] oregon supply backing truthful the institution could support moving forward,” per the email.

Last week, the institution issued a Worker Adjustment and Retraining Notification announcement to the employees astatine its Seattle headquarters, which told them that the 64 radical moving determination could beryllium laid disconnected arsenic soon arsenic January 9. But this isn’t a targeted layoff, according to the email — it’s conscionable the lone Rad Power bureau with capable workers to necessitate this benignant of mandated warning.

“In the lawsuit the institution is forced to close, Rad would beryllium required to cease operations connected January 9, 2026 oregon wrong 14 days thereafter,” according to the email. “In that case, Rad expects that immoderate cessation of operations volition impact each locations and departments, volition beryllium imperishable successful nature, and that each employees volition beryllium terminated effectual January 9, 2026.”